By Sonja Bethel, ContributorFOR MANY of us, last year was a most unfruitful year. Not that we made any drastic mistakes with our personal finances, but things can definitely be better.
Take a breath, and consider these ways to improve your financial situation for this year.
Live for today and plan for tomorrow. Why do the majority of people fail to achieve financial independence? Not because they planned to fail, but because they failed to plan. Meet with your financial planner to create a personal and family financial plan, so that you have clearly defined goals and targets.
Get referrals from those you trust, and make sure the advisor has the proper training and credentials to suit your specific situation.
Whenever a significant lifestyle change increases or decreases your disposable income, you should review your financial plan. This includes marriage, divorce, a new baby, death in the family, unemployment or a job change. Following a budget can help you track and control your level of debt, and plan better for the unexpected. You should also get an analysis done of your assets, liabilities, expenses and income sources. Save enough to reach your goal, then spend the rest without guilt.
Remember, it's never too late (or too early) to start saving. Do not beat yourself up too badly about what little financial planning you've done; rather, focus that energy and time on constructive ways to move forward. It is never too early to start planning for your financial future.
Albert Einstein was once asked what he thought was the most powerful phenomenon.
His response was "compound interest." Use it to your advantage!
Did you develop the habit of saving every month while still paying your bills? If you have not done so already, adopt the "magic-10" formula.
After you take 10 per cent to your church, take another 10 per cent to your savings account.
It's the magic of giving that provides growth for your own portfolio of savings and investments.